#1
Which of the following is a component of aggregate demand (AD)?
Government spending
Disposable income
Labor force participation
Producer price index
#2
What effect does an increase in consumer confidence have on aggregate demand (AD)?
Decreases AD
Increases AD
Has no effect on AD
Causes a shift in the long-run aggregate supply curve
#3
What is the impact of a decrease in government spending on the aggregate demand (AD) curve?
Shifts AD to the left
Shifts AD to the right
Causes movement along the AD curve
Has no effect on the AD curve
#4
Which of the following is a determinant of aggregate demand (AD)?
Technology
Income tax rates
Wages
Labor force participation
#5
Which of the following is a factor that can lead to a shift in the long-run aggregate supply (LRAS) curve?
Changes in consumer preferences
Technological advancements
Changes in income tax rates
Government spending
#6
What is likely to happen if there is a decrease in the price level and all other factors remain constant?
An increase in aggregate demand (AD)
A decrease in aggregate demand (AD)
An increase in short-run aggregate supply (SRAS)
A decrease in short-run aggregate supply (SRAS)
#7
What causes a rightward shift in the long-run aggregate supply (LRAS) curve?
Increase in government regulation
Technological advancements
Increase in income tax rates
Decrease in productivity
#8
What is the relationship between the unemployment rate and the aggregate demand (AD) curve?
As unemployment decreases, AD increases
As unemployment increases, AD decreases
There is no relationship between unemployment and AD
AD increases regardless of the unemployment rate
#9
Which of the following is a determinant of long-run aggregate supply (LRAS)?
Price level
Government policies
Technological advancements
Aggregate demand (AD)
#10
In the aggregate demand-aggregate supply (AD-AS) model, what is the effect of an increase in the money supply?
Shifts AD to the left
Shifts AD to the right
Shifts SRAS to the left
Shifts SRAS to the right
#11
What is the result of an increase in both aggregate demand (AD) and short-run aggregate supply (SRAS)?
Higher output, uncertain price level
Lower output, lower price level
Higher output, lower price level
Lower output, uncertain price level
#12
What happens to equilibrium output if aggregate demand (AD) decreases and short-run aggregate supply (SRAS) increases?
Output decreases
Output increases
Output remains unchanged
Price level increases
#13
How does an increase in interest rates affect investment and aggregate demand (AD)?
Decreases investment, increases AD
Increases investment, decreases AD
Decreases investment, decreases AD
Increases investment, increases AD
#14
In the long run, what happens if aggregate demand (AD) exceeds aggregate supply?
Inflation
Recession
Deflation
Stagflation
#15
In the short run, what happens to the price level and output when there is a decrease in aggregate demand (AD)?
Price level increases, output decreases
Price level decreases, output decreases
Price level decreases, output increases
Price level increases, output increases